Pertamina Highlights Climate Targets Achievement at COP28 Event

Dubai, December 4, 2023 – To achieve the Net Zero Emission target by 2060, PT Pertamina (Persero) has implemented various programs whose results have been visibly significant. Pertamina showcased these accomplishments at the United Nations Climate Change Conference 2023 or the Conference of the Parties 28, held in the United Arab Emirates.

Presented by the Senior Vice President of Research and Technology Innovation of Pertamina, Oki Muraza, the company has transformed the energy trilemma of security, sustainability, and energy affordability into opportunities. This strategy addresses the continuously increasing energy demand by 3.6 to 4.2 percent annually.

Oki emphasized that Pertamina has actively developed new and renewable energies (NRE), such as bioenergy and geothermal. These various innovations and programs were explained by Oki during the discussion themed "Mainstreaming International Commitment and NDC's Implementation to Strengthen National Ambition" at the Indonesian Pavilion in Dubai on Saturday (2/12).

The energy transition innovations and programs have led Pertamina to reduce greenhouse gas emissions by 31 percent from 2010 to 2022. These efforts have positively impacted the company's performance, reflecting commendable rankings in the ESG (Environment, Social, and Governance) aspects.

"In 2022, Pertamina's ESG rating increased to 22.1. Pertamina occupies the 2nd position in the integrated oil and gas industry category. Its ranking significantly rose from 2021, a true achievement," expressed Oki.

To drive energy sustainability, Pertamina has implemented several strategies, including the reduction and utilization of flare gas, methane capture, and energy efficiency.

Pertamina reduced emissions from flare gas utilization by 5.3 million metric tons of CO2 equivalent (MMtCO2e). The company also noted reductions in emissions from energy efficiency by 1.4 MMtCO2e, gas fuels by 0.04 MMtCO2e, and various other activities by 1.2 MMtCO2e.

Moreover, Pertamina has developed Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) technologies. Oki explained that Pertamina has collaborated with various parties to develop nine carbon capture sites in Sumatra, Kalimantan, Java, and Sulawesi.

Additionally, Pertamina is currently developing a green refinery. Oki stated that there are two phases of green refinery development in Cilacap Regency, Central Java. The first phase was completed in February 2022 with a hydrogen production capacity of three thousand barrels per day (KBPD). "This is our effort to reduce emissions through low-emission fuels," said Oki.

This technology utilizes refined bleached deodorized palm oil (RBDPO) as a raw material, purified and devoid of odor. The second phase is underway, with a target capacity of six KBPD. Pertamina also possesses petrochemical technology.

In the transportation sector, Pertamina is promoting decarbonization through biofuel development. Oki mentioned that the transportation sector contributes 20 percent to total emissions. This impetus has led Pertamina to develop biodiesel with a production target of 13 million tons per year.

Pertamina is also developing bioethanol in Surabaya (East Java) and DKI Jakarta using sorghum. "Next, we will develop it from mangroves, utilizing glucose from the Nipah mangrove species," added Oki.

To further promote NRE, Pertamina is developing geothermal energy in six regions across Sumatra, Java, and Sulawesi. In 2023, the operational capacity of geothermal production reached 672.5 megawatts (MW). Pertamina Geothermal Energy (PGE) plans to increase this capacity by 340 MW in the next two years.

Finally, Pertamina is developing hydrogen in five clusters in Batam (Riau), the southern region of Sumatra Island, Cilegon City (Banten), North Sulawesi, and areas along the Sumatra-Java region. These clusters are projected to have a hydrogen potential of 1.8 million tons per year (Mtpa).

To facilitate energy transition strategies and emission reductions, Oki emphasized the importance of collaboration, technological development, and regulatory support. "Its development requires collaboration with strategic partners and incentives from the government. It is to promote technology transfer, minimize risks, and assist companies to grow," he stated.

Similarly, the Director of Transmission and System Planning of PT Perusahaan Listrik Negara (PLN), Evy Haryadi, emphasized the importance of synergy between PLN and Pertamina. As state-owned enterprises operating in the energy sector, both play crucial roles in realizing the energy transition agenda.

Meanwhile, the Deputy for Coordination of Environmental and Forestry Management of the Coordinating Ministry for Maritime Affairs and Investment, Nani Hendiarti, stated that Indonesia must prepare amid two differing needs. "We must achieve NZE by 2060 amid increasing needs for energy security, sustainability, and affordability," she remarked.

In the Enhanced Nationally Determined Contribution (ENDC) document, Indonesia has a target of reducing emissions by 31.89 percent on its own and 43.2 percent with international assistance. The energy sector targets 358 MtCO2e independently and 446 MtCO2e with international assistance.

Climate action targets can be achieved through sectoral synergies, such as the energy and environmental sectors. Therefore, the Director-General for Climate Change Control of the Ministry of Environment and Forestry, Laksmi Dhewanti, advised merging energy sector company strategies with land sector strategies to realize climate action.

Global Director of World Bank Energy and Extractive Global Practice, Demetrios Papathanasiou, was also a panelist in the session. Alongside collaboration, he also emphasized the importance of financial support to collectively achieve climate targets.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**